Exciting job to do - there are few more fulfilling things in a reno than adding benchspace. Have you decided the bar will extend out past the end of the current benchtop, or will you sacrifice the end cupboard?

Thank you all for the comments!! It's really helpful! After few days of thinking and rethinking, plus doing experiments in the space, I think we will go with this: I am aware that this leaves us with small kitchen, but more then anything I hate being in a space with too much heavy stuff. For two of us, plus extra couple here and there I think it could be enough if we avoid single purpose appliances. If we feel that we really do need more kitchen space, I will move table to center and add another line of elements (galley kitchen).

What colour are the cabinets, in the photo they have a purple look to them, or a dark brown colour, or black.... hard to tell. The back splash tile is not suitable. appears way too busy. Taking the same concept as the floor tile. use a triangle tile in ONE of the same colours that are in the floor tiles. will add interest from texture and will not compete with your floor tile. But it all depends on the aesthetic that you are after, the age of the home etc.

As you appear to use the back living as the dining, I would have a break in that side of kitchen for ease of access. I would close up the current exit opposite the bathroom. I would move fridge across the room and move pantry next to it. Remove the current pantry walls and right angle the cabinets, on both sides, instead of angled. Move oven to near the cooktop. Maybe underbench oven. Microwave and appliances along those benches with overhead cupboards. The angled walls that close off the front living may be load bearing. So you would need to get that checked out before thinking of knocking them down for stools to be placed there. You also have so many appliances on the benches. You need somewhere to put those when not in use. If you open the walls, then you will lose that storage area.